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> deductible IRA contributions must be added back when calculating your income Not true. IRA/401k/HSA reduce MAGI for healthcare purposes. Do not confuse MAGI
by junar 7y ago
> deductible IRA contributions must be added back when calculating your income
Not true. IRA/401k/HSA reduce MAGI for healthcare purposes. Do not confuse MAGI for the healthcare marketplace with MAGI on your tax return; those are two different figures.
https://www.healthcare.gov/income-and-household-information/income/#magi https://www.healthcare.gov/income-and-household-information/...
https://www.healthcare.gov/reporting-deductions/ https://www.healthcare.gov/reporting-deductions/
- PhantomGremlin 7y agoHa. You're right about IRA deductions with respect to healthcare. But I knew that I saw IRA being added back somewhere! It turns out I was thinking of FAFSA. IRA deductions are added back for computing income for financial aid purposes. Tax exempt interest is added back for both healthcare and FAFSA. That's why tax programs and tax accountants are essential. It's difficult for people who don't do this for a living to remember all of this.